What OTC items are eligible with an FSA or HRA?

It can be confusing to figure out which items are eligible under a pre-tax account. This list* provides some guidance on the kinds of OTC items that are eligible, when you might need a prescription or certificate of medical necessity, what a dual purpose item is, and OTC items that are not eligible. Click here […]

What OTC items are not eligible for reimbursement?

OTC items are not eligible for reimbursement if they are normally used for general health, are not used to treat a medical condition (e.g. toothpaste, mouthwash, lotion, shampoo) or are cosmetic in nature (e.g. teeth whitening products, wrinkle reducers). See additional examples in the OTC Chart.

What documentation do I need to submit for reimbursement of eligible OTC items?

Along with your completed claim form, you must submit an itemized receipt that includes the following information: Name of the provider Date of the purchase Name of the item being purchased Your out-of-pocket cost for the service Your signature on the claim form certifies that the item qualifies as an eligible expense under IRS regulations, […]

What requirements must be met for an OTC item to be eligible for reimbursement?

To be eligible for reimbursement: A medical item must be used “primarily for the prevention or alleviation of a physical or mental defect or illness.” It cannot be used unless it is for a particular medical condition. A drug or medicine requires a prescription from your medical provider. The item must be used by the […]

Can I purchase large quantities of OTC items?

Reasonable quantities of eligible OTC items are reimbursable if purchased for either existing or imminent medical conditions. If large quantities are necessary for the treatment of an existing condition, the medical provider must indicate on the Certification of Medical Necessity form that the quantity being purchased is necessary for the treatment of a diagnosed medical […]

Are all OTC items eligible for reimbursement from my Medical FSA?

Effective January 1, 2011, the rules changed regarding what is an eligible over-the-counter (OTC) item for reimbursement from a Medical FSA, HRA or HSA. OTC drugs and medicines require a prescription Health Account funds may no longer be used for OTC drugs and medicines (other than insulin) without a prescription from a medical provider. This […]